DP6787 Links and Architecture in Village Networks

Author(s): Pramila Krishnan, Emanuela Sciubba
Publication Date: April 2008
Keyword(s): Endogenous network formation, rural institutions, social networks
JEL(s): D85, O12, O17, Z13
Programme Areas: Development Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=6787

In this paper we test the implications of a model of network formation on data from rural Ethiopia. In contrast to the current literature, we demonstrate the critical role of both number of links and architecture in determining the impact of social networks on outcomes. Social capital matters, but its impact differs by the architecture of the network to which one belongs.